‘India tech revenue to hit $315 bn in FY26’

India’s technology industry is projected to grow 6.1 per cent in FY26, taking total revenues to USD 315 billion despite geopolitical uncertainties and rapid changes driven by artificial intelligence, according to Nasscom.

The industry body said the sector will add 1.35 lakh new jobs in FY26, raising total direct employment to 59.5 lakh from 58.15 lakh at the end of FY25. In FY25, the industry recorded a net addition of 1.33 lakh jobs. While the increase of 2,000 additional jobs year-on-year marks one of the slowest expansions in recent years, Nasscom maintained that the sector continues to remain a net employment generator.

Nasscom President Rajesh Nambiar noted a “non-linearity” between revenue growth of 6.1 per cent and employment growth of 2.3 per cent, reflecting higher productivity and technology-led efficiencies, particularly with AI adoption. Over 20 lakh professionals have been upskilled in AI-related technologies, including nearly 3 lakh trained in advanced AI skills.

In its strategic review, Nasscom estimated AI-related revenues at USD 10–12 billion in FY26, though it cautioned that not all companies separately disclose AI revenues. The body also revised FY25 revenue upwards to USD 297 billion from its earlier estimate of USD 282.6 billion.

Segment-wise, core IT services revenue is expected to rise to USD 149 billion in FY26 from USD 143 billion in FY25. Business process management is projected to grow to USD 59 billion from USD 55 billion, while software products revenue may increase to USD 23 billion from USD 21 billion. Engineering, research and development revenues are set to touch USD 63 billion, and hardware revenues USD 21 billion.

Asia-Pacific and the Middle East are emerging as faster-growing markets, while domestic revenues are expected to expand 7.9 per cent, outpacing the global average. Healthcare, travel and transportation are among the fastest-growing sectors, supported by the rise of global capability centres in India.